First Fidelity Adds Tier I Capital

First Fidelity Bancorp said it completed a private placement of $221 million in equity with Banco Santander of Spain.

The previously disclosed transaction involves the sale of 9.5 million new shares of common stock and issuance of four-year warrants for an additional 9.5 million shares.

The company said that with the capital infusion, its Tier 1 leverage ratio rises to 5.85%, its risk-adjusted Tier 1 capital to 8.38%, and its total risk-adjusted capital ratio to 12.19%, as of Sept. 30.

In response, Standard & Poor's Corp. said it raised its ratings one notch on First Fidelity's subordinated debt to BBB from BB-plus.

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